What It Does: Broadcom designs semiconductor and infrastructure software solutions for data centers, networking, storage, and wireless communications. Its custom AI accelerators (XPUs) for hyperscalers like Google (TPU), Meta, and ByteDance have made it a primary beneficiary of the custom silicon boom. Broadcom also owns VMware (acquired in 2023 for $69B), Symantec’s enterprise security division, and CA Technologies. The semiconductor segment supplies Ethernet switching, optical interconnects, and Wi-Fi chips to virtually every major tech company.
How the Stock Looks: AVGO trades near $200 in mid-April 2026 (post-split adjusted). Revenue is projected to exceed $75 billion in FY2026, with the VMware integration driving massive margin expansion. AI-related semiconductor revenue alone exceeds $15 billion, growing 50%+ annually. Operating margins are above 45%. The stock trades at roughly 30x forward earnings — reasonable for its growth profile. Free cash flow generation is exceptional at $20B+.
What Analysts Are Saying: 28 analysts rate AVGO a Strong Buy with an average price target of $255. The range is $175 to $330. Bulls at Bernstein and Morgan Stanley highlight custom AI silicon as a multi-year growth driver and VMware cross-selling as a margin accelerator. Bears cite customer concentration (3–4 hyperscalers drive AI revenue) and VMware integration risk. Broadcom’s capital allocation discipline under CEO Hock Tan, however, has an impeccable track record.